In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

Abstract: for Ethernet Square has long been the network upgrade program, designed to address scalability and security issues of the network. In the first stage, the blockchain “world computer” will shift to the Proof of Stake Consensus Mechanism (PoS).

This is a long process, but the first phase of Ethereum 2.0 is finally up and running.

The multi-stage upgrade aims to solve the scalability and security of the Ethereum network through several changes to the network infrastructure-most notably, the conversion from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism .

What is Ethereum 2.0?

Ethereum 2.0, also known as Eth2 or “Serenity”, is an upgrade of Ethereum. The upgrade aims to improve the speed, efficiency, and scalability of the Ethereum network so that it can handle more transactions.

Ethereum 2.0 was launched in several stages. The first upgrade, called the beacon chain , was launched on December 1, 2020. The beacon chain introduces the concept of the original chain to Ethereum, which is a key feature of the network’s transition to the PoS consensus mechanism. As the name suggests, it is a blockchain independent of the Ethereum mainnet.

The second phase is called The Merge, and it is expected to merge the beacon chain with the Ethereum mainnet in the first or second quarter of 2022 .

In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

The final stage is divided plate-link chain , and play a key role in the expansion of Ethernet networks Square. The shard chain does not settle all operations on a single blockchain, but distributes these operations to 64 new chains.

This also means that from a hardware point of view, it is much easier to run an Ethereum node because there is much less data that needs to be stored on the machine.

The sharding chain is not expected to appear until 2022, but the exact time is still unclear.

What is the difference between Ethereum 2.0 and Ethereum?

Ethereum 1.0 uses a consensus mechanism called Proof of Work (PoW), while Ethereum 2.0 will use a Proof of Stake (PoS) mechanism.

What is the difference between proof of equity and proof of work?

For blockchains like Ethereum, transactions need to be verified in a decentralized manner. Ethereum , like other cryptocurrencies such as Bitcoin , currently uses a Proof of Work (PoW) consensus mechanism.

In this system, miners use the processing power of the machine to solve complex mathematical problems and verify new transactions. The first miner to solve the puzzle adds a new transaction to all the transaction records that make up the blockchain. Then, they will be rewarded with the network’s native cryptocurrency. However, this process may require a huge amount of energy.

The difference in Proof of Stake (PoS) is that users can use the network’s local cryptocurrency as a pledge to become a verifier instead of a miner. Verifiers are similar to miners in that they verify transactions and ensure that the network does not process fraudulent transactions .

These validators are selected and propose a block based on the amount of cryptocurrency they pledged and the time they pledged.

Then, other verifiers can prove that they have seen a block. When there is enough proof, a block can be added to the blockchain. Then the verifier will be rewarded for the successful block proposition. This process is called mining.

The main advantage of PoS is that it is more energy efficient than PoW because it decouples energy-intensive computer processing from consensus algorithms. This also means that you don’t need a lot of computing power to ensure the security of the blockchain.

How will Ethereum 2.0 be more scalable than Ethereum 1.0?

One of the main reasons for upgrading to Ethereum 2.0 is scalability.

In Ethereum 1.0, the network can only support about 30 transactions per second; this causes delays and congestion. Ethereum 2.0 promises up to 100,000 transactions per second. This growth will be achieved through the implementation of sharding chains.

How will Ethereum 2.0 be more secure?

The design of Ethereum 2.0 has considered security issues. Most PoS networks have a small number of validators, which makes the system more centralized and reduces network security. Ethereum 2.0 requires at least 16,384 validators, making it more decentralized and therefore more secure.

However, according to Lior Yaffe, co-founder of Jelurida and chief core developer of the Ardor and Nxt blockchain, there is a potential vulnerability that focuses on the level of network participation.

Organizations including blockchain security companies Least Authority and Quantstamp are conducting security audits on the Ethereum 2.0 code.

The Ethereum Foundation is also setting up a dedicated security team for Ethereum 2.0 to study possible network security issues in cryptocurrencies.

Ethereum 2.0 researcher Justin Drake (Justin Drake) said that the research will include “fuzzing, bounty hunting, pager duty, and cryptoeconomic modeling.” ), applied cryptanalysis, formal verification”.

In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

How does the upgrade of Ethereum 2.0 proceed?

After the launch of a series of testnets, Topaz, Medalla, Spadina and Zinken, the full promotion of Ethereum 2.0 will be carried out in three stages. Phase 0, 1, 2 (Developers like to start from scratch). Phase 0 will start on December 1, 2020, and other phases will come in the next few years.

Phase 0 saw the implementation of the beacon chain ; it stored and managed the verifier’s registry, and deployed the PoS consensus mechanism for Ethereum 2.0. The original Ethereum PoW chain will run simultaneously with it, so the continuity of data will not be interrupted.

Phase will take place in the first quarter/second quarter of 2022, and will see the Ethereum mainnet merge with the beacon chain, officially ending the PoW on the network. Users who recharge Ethereum on Beacon Chain will be assigned the role of validator.

The first two stages will be the introduction of network sub- piece chain , it is expected to launch 64 slices (64 times the throughput of more than 1.0 Ethereum ratio), even though they do not support the account or smart contract at the time of launch.

The previous roadmap iteration put the merge event after the launch of the shard chain, but due to the interoperability of each upgrade, it was later decided to reverse these launch events.

“Initially, the plan was to work on the sharding chain before the merger – to address scalability,” the Ethereum Foundation document reads. “However, with the vigorous development of second-tier scaling solutions, the priority has shifted to replacing the proof of work with proof of equity through consolidation.”

When was Ethereum 2.0 released?

The beacon chain of Ethereum 2.0 is the first phase of the release of Ethereum 2.0 and will be officially launched at 12:00 UTC on December 1, 2020.

Danny Ryan, a core researcher of the Ethereum Foundation, pointed out in the Ethereum 2.0 live broadcast: “The key to the health of this thing is that we see more than two-thirds of participation.”

With the confirmation of the launch of the beacon chain, there are more than 21,000 active validators on the network at the time of writing, with a success rate of over 80% in each epoch.

The beacon chain will initially exist separately from the current Ethereum mainnet, before the mainnet is “connected” with the equity proof system.

The first eligible block is slot 1, and its verifier signed it with a mysterious message. “Mr. F is here”.

In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

A large number of members of the Ethereum community celebrated this successful launch, including Ethereum co-founders Vitalik Buterin and Joseph Lubin.

In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

An intense month of preparation was also carried out before the launch, in which certain standards must be met.

After the release of the deposit contract on November 4, 2020, by November 24, there will be 16,384 validators on the network, each of whom will pledge 32 Ethereum, for a total of 524288 ETH.

In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

Initially, the speed of staking was slower than expected. A Twitter survey conducted in early November showed that half of the respondents did not plan to pledge before the deadline; only 21.3% said that they had either already pledged or Intend to pledge 32 Ethereum.

In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

The reason given is the cost-32ETH was more than $19,000 at the time. The community united, Vitalik Buterin promised to provide 3,200 Ethereum worth more than 1.9 million U.S. dollars, and DARMA Capital allocated 50 million U.S. dollars of its own assets so that institutions and individuals can donate to Ethereum 2.0 while maintaining liquidity.

As the possible postponement of the issuance approached, in the 11th hour, a large number of verifiers promised to staking in the later period.

Just 24 hours before the deadline, only 50% of the target was reached; for Ethereum 2.0, fortunately, by November 24, there were already enough validators committed to supporting the beacon chain.

Today, according to data from the Ethereum analytics platform Eth2 Launchpad, there are more than 230,841 validators.

The future of Ethereum 2.0

Ethereum co-founder Vitalik Buterin has developed a roadmap for the next five to ten years for Ethereum 2.0.

In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

He said that in the past two years, “from the research of the blue sky, trying to understand what is possible, to specific research and development, trying to optimize the specific primitives we know can be achieved, and achieve them, there has been a solid foundation. Change.”

Vitalik said that most of the challenges are now “increasingly centered around development, and the share of development will only continue to grow over time.”

In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

In June 2020, Vitalik pointed out that before implementing the sharding chain, Ethereum 2.0 needs to rely on current extension methods such as ZK-rollup for at least two years.

In August 2021, the London hard fork of Ethereum and the deployment of Ethereum Improvement Proposal 1559 (EIP-1559) changed the way transaction fees operate on the network. EIP-1559 sees that users who conduct transactions on the network pay a basic fee. This fee is burned instead of to the Ethereum miners, which reduces the supply of ETH and brings deflationary pressure to the Ethereum network.

The London hard fork has become the next stage of the trial operation of Ethereum 2.0, and Vitalik Buterin expressed confidence in the next step of the Ethereum network. Vitalik told Bloomberg that the successful launch of the London hard fork proved that the Ethereum ecosystem “can make major changes” and “it definitely makes me more confident in the merger.”

How will Ethereum 2.0 affect the price of Ethereum?

For some people, the launch of Ethereum 2.0 is exactly what cryptocurrency needs.

“Once Ethereum is scalable through the second layer of technology or ETH 2.0, all questions will be answered,” Jamie Anson, founder of Nifty Orchard and organizer of Ethereum in London, told Decrypt. “The starting gun will sound.”

In other words, more scalability means more usage, which in turn means more demand. This—at least in theory—should push the price of Ethereum to new heights.

“When ETH 2.0 and rollups work together, there will be a transaction capacity of 100,000 transactions per second. This will mean providing a completely seamless experience for the next billion people,” Anson added.

In-depth exploration of Ethereum 2.0: speed, efficiency and scalability

Focus on mempool complexity Blocknative CEO Matt Cutler is also optimistic, especially notably with the launch of Square Ethernet 2.0, gas costs are expected to decline.

“Our customer base believes that reducing transaction fees and increasing network throughput are big areas of opportunity going forward,” he told Decrypt.

In addition, an ecosystem focusing on major milestones will increase the momentum of Ethereum developers. ” This will have a long-term bullish effect on the price of ETH-despite short-term fluctuations, this is also part of the valuation of crypto assets . ” Cutler added.

Original link: https://decrypt.co/resources/what-is-ethereum-2-0

Authors | Rene Millman, Liam J. Kelly

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/in-depth-exploration-of-ethereum-2-0-speed-efficiency-and-scalability/
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